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Credit cards can be used to pay for everything from gas and groceries to your tax bill. But can you make your mortgage payment with a credit card?
Most mortgage providers don't accept credit card payments, but there are workarounds. They usually involve fees and come with some risks.
Below, CNBC Select outlines how to make a mortgage payment using a credit card, which cards might reap the biggest rewards and how to weigh the risks against the benefits.
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How to pay a mortgage with a credit card
Lenders don't typically accept mortgage payments by credit card because they would have to pay a credit card transaction fee, which can be as high as 3.5%. You'd also be paying secured debt with unsecured debt, possibly at a higher interest rate.
There are ways to indirectly use your card to pay your mortgage, however.
Third-party payment platform
Some vendors will make a payment to a lender on your behalf. Plastiq, for example, charges a 2.9% fee and the funds can be sent via cash, check or bank transfer.
Plastiq will only process mortgage payments for cards on the Mastercard and Discover network, not Visa or American Express. Check with your issuer for any additional restrictions and whether transactions are processed as purchases or cash advances.
Cash advance
If your card has a cash advance option, you could use it to pay your mortgage. There is typically a service fee for a cash withdrawal, however, and most card issuers start charging interest as soon as the advance posts on your account, rather than at the end of the billing cycle.
The annual percentage rate (APR) on cash advances is considerably higher than on regular purchases: The APR on regular purchases on a Capital One Venture Rewards Credit Card, for example, is 19.49% - 28.49% variable. The rate on cash advances, though, is 28.74% variable.
The Capital One Venture Rewards Credit Card has a reasonable annual fee and earns flexible travel rewards, which makes it a great travel card for beginners or heavy travelers.
- Valuable welcome offer worth at least $750 in travel
- You can transfer miles to over 15 Capital One partners, including Emirates Skywards, Choice Privileges and Singapore Airlines KrisFlyer
- No foreign transaction fees
- Lacks ongoing travel benefits such as statement credits or lounge access
- Limited bonus spending category that only applies to certain Capital One Travel bookings
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel
- Earn unlimited 2X miles on every purchase, every day
- Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel
- Miles won't expire for the life of the account and there's no limit to how many you can earn
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
- Enjoy a $50 experience credit and other premium benefits with every hotel and vacation rental booked from the Lifestyle Collection
- Transfer your miles to your choice of 15+ travel loyalty programs
- Top rated mobile app
Balance transfer fee
$0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you
Foreign transaction fee
None
A cash advance on the Venture card also comes with a service fee of 3% or $10 (whichever is greater) and cash advances are not generally included in 0% APR introductory periods or rewards programs.
Balance transfer check
Some card issuers provide account holders with paper checks linked to their account that can be used to buy items, get cash or pay someone for services. Fees for these checks can range from 2% to 5% and transfer checks typically have a higher interest rate than purchases.
If you're approved for a Chase Freedom Flex®, you may receive balance transfer checks that can be made out to your mortgage provider. The fee for a balance transfer made within 60 days of opening a Freedom Flex card is $5 or 3%, whichever is more. (After the intro period, it goes up to $5 or 5%, whichever is higher.)
In addition, Freedom Flex cardholders may qualify for a 0% intro APR on purchases and balance transfers for the first 15 months from account opening. After that, the base APR ranges from 18.24% - 27.74% variable.
The Chase Freedom Flex® is an excellent cash-back card for maximizing your spending in a variety of categories.
- Long intro APR for purchases and balance transfers
- Rewarding quarterly bonus categories
- No annual fee
- Bonus categories are capped each quarter
- Has a foreign transaction fee
Rewards
- 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%)
- 5% cash back on travel booked through Chase Travel℠
- 3% on drugstore purchases and on dining (including takeout and eligible delivery services)
- 1% cash back on all other purchases
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3%
Benefits of paying your mortgage with a credit card
There are upsides to using a card, though financial advisors suggest only doing it if you have the money to cover the payment on time and in full.
Welcome bonus or rewards
Since housing typically makes up the largest chunk of Americans' monthly expenses, charging your mortgage can help you get the most out of your card's rewards program. If you're hoping to take advantage of a welcome bonus, though, you'll have to get approved for a new card and use it within a limited window.
The Capital One Quicksilver Cash Rewards Credit Card allows you to earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening. If your mortgage payment is $1,500, you'd make more than $150 after paying Plastiq's 2.9% service fee.
You'd also get 1.5% cash back, or $22.50, as part of the card's rewards program.
The Capital One Quicksilver Cash Rewards Credit Card has no annual fee, cash-back rewards and a generous intro-APR offer, which make it a great option for saving on interest while earning rewards.
- No annual fee
- Low spending requirement for the welcome bonus
- Redeem cash back for any amount at any time
- No foreign transaction fee
- 3% balance transfer fee during the first 15 months your account is open
- No bonus rewards categories
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase, every day
- $0 annual fee and no foreign transaction fees
- Earn unlimited 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel
- No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won't expire for the life of the account and there's no limit to how much you can earn
- 0% intro APR on purchases and balance transfers for 15 months; 18.49% - 28.49% variable APR after that; balance transfer fee applies
- Top rated mobile app
Balance transfer fee
- 3% for the first 15 months; 4% at a promotional APR that Capital One may offer you at any other time
0% introductory APR
With the Discover it® Miles, you can earn an unlimited 1.5x miles per dollar on every purchase. It's one of the most flexible travel cards on the market, allowing users to book flights or stay at any hotel. As a welcome bonus for new members, Discover will match all the miles you earn at the end of your first year. If your mortgage payment is $1,500 a month ($18,000 a year), you'd earn 54,000 miles, worth about $540.
Information about Discover cards has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication.
The fee from Plastiq would be about $522, so you'd net a modest $18.
But the card also comes with a 0% intro APR for 15 months on purchases (17.49% - 26.49% variable APR afterward). That could give you some flexibility with making payments. Just be sure to pay off the total before the intro period expires or you'll be paying a much higher interest rate than your mortgage has.
Risks of using a credit card to pay your mortgage
There are fees associated with using a card to cover your mortgage payment, especially if you don't pay the balance in full by the end of the billing cycle.
Interest and transaction fees
If you carry a balance, the interest could wipe out any gain from your card's rewards program. Even if you pay in full before the end of the billing cycle, there's still the service fee from Plastiq.
Impact on credit score and credit utilization ratio
On-time payments are the largest factor in determining your FICO credit score. So you could seriously damage your credit if you don't pay the credit card bill by the due date.
Even if you do pay it on time, your credit utilization ratio could take a temporary hit. Because issuers can be slow to report to the credit bureaus, there tends to be a lag between your current card balance and the balance on your credit report, according to Experian.
FAQ
Can I use a credit card to pay my mortgage?
While most mortgage lenders don't accept credit card payments, you may be able to charge the amount to a third-party company like Plastiq, which will send it in the form of cash, check or bank transfer for a fee.
Can I earn points by paying my mortgage with a credit card?
You can accrue points and other rewards by charging your monthly home payment to a third-party payment platform. Be sure, however, that the cash value of any benefits outweighs the fees and interest you could pay. Cash advances and balance transfers don't earn rewards.
Can I get Bilt Rewards on my mortgage?
Currently, the Bilt Mastercard (see rates and fees) can only be used to pay rent. The company indicated in January 2024 that it is looking into adding mortgage payments to its offerings.
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For rates and fees of the Discover it® Miles, click here.
